I'm by no means a LaTex expert. I've written a few papers and a bunch of reports, nothing published, just undergraduate stuff. I dropped out halfway through my graduate degree, so I'm not what you'd call an academic. But I've seen and read enough to know that you can do impressive things with LaTex.
I have another question though, how much have you used Word? I have used it only a couple of times since highschool, but it's gotten pretty impressive. I bet that if you really dive into it you could get very close to the power of latex. At least, with regards to the typesetting. The drawing images/formulas/schemas thing is a whole different ballgame I'd agree.
Anyway, my point was not that Microsoft Word in any way is a good replacement for LaTex, I'm just saying that if LaTex could be as well written as Word is, it could have these fancy GUI and fast rendering features too.
There's people out there that think that the power in typesetting that LaTex has is mutual exclusive with the speed and usability that Word has. That just isn't so.
The only reason LaTex isn't fast and more easily extensible is that it was written for the machines of 40 years ago, that didn't have enough RAM to hold the parsed tree of a document.
LaTex could be ten times as fast, were it written in Ruby, the slowest language out there. Just because a modern programmer would make use of the modern hardware and modern design concepts, and just make it responsive. A GUI could be as simple external process that accessed a message passing API, rendering it to HTML and run it through Webkitview.
Overhead everywhere, still ten times faster than LaTex...
(edit: definitely worth a downvote, this comment :P)